What does HEICO Corporation do?

HEICO Corporation (NYSE: HEI) is a U.S. aviation and electronics company, founded in 1957 and headquartered in Hollywood/Miami, Florida. ~11,100 employees. Its reputation comes from a very particular model: being the largest independent maker of FAA-approved replacement aircraft parts that compete head-on with the original maker's parts — cheaper, same certified safety. Two segments: (1) Flight Support Group (FSG) — the heart of the business. It makes parts under FAA-PMA (Parts Manufacturer Approval): replacements for engines and aircraft that the FAA certifies as equivalent to the original part, but that HEICO sells 30-50% cheaper than Boeing, Airbus, GE or Pratt & Whitney. It also repairs and overhauls components (MRO). Its customers are airlines and maintenance shops that want to lower the cost of keeping their fleet flying. Q2 FY2026: record sales of $929.4M (+21%), 26.2% operating margin. (2) Electronic Technologies Group (ETG) — mission-critical electronics: components for defense, satellites, spacecraft, medical equipment and telecom. It is the higher-margin business and grows fast. Q2 FY2026: record sales of $459.5M (+34%), 26.5% operating margin. The Mendelson model (the real thesis): in 1990, Laurans Mendelson and his family took control and turned HEICO into an acquisition machine: they buy small, profitable niche companies (founder-led), keep the people and culture, and let the business keep growing under HEICO's umbrella. Repeating that for 35 years, the stock delivered a return of ~47,500% between 1990 and 2019. His sons Eric Mendelson (runs FSG) and Victor Mendelson (runs ETG) are co-presidents — succession already underway. In 2023 they closed their largest deal to date: Wencor Group for ~$2 billion, one of the biggest independent distributors and makers of PMA parts, which doubled their catalog. Two-class share structure: there is HEI (voting) and HEI.A (non-voting, cheaper). We are buying HEI, the voting class. The family keeps firm control of the company through this structure — good for long-term strategy, but it concentrates power in a single family. Capital allocation: HEICO pays a tiny dividend (~0.07% a year, semiannual) — more a symbolic gesture than real income. Its philosophy is to reinvest almost all cash into buying more companies, because that is the real compounding engine.

Why did Vectorial Data pick HEI?

HEI at $341.87 is buying one of the best compounding machines on the stock market: a family-run company that has spent 35 years buying niche aviation and electronics businesses and growing them. Specific reasons: (1) Structural cost advantage: HEICO sells FAA-approved aircraft parts 30-50% cheaper than the original maker. With airlines obsessed with cutting costs and fleets aging, there is structural demand for cheaper replacements — and HEICO is the independent leader. (2) Record and accelerating growth: Q2 FY2026 delivered sales +25% ($1,375.7M) and net income +49% ($233.8M), with 18% organic growth — not just from deals, the core business is accelerating. The stock jumped ~+12% on the report. (3) Two high-margin engines: both FSG (parts, 26.2% margin) and ETG (defense/space electronics, 26.5% margin) are at records; ETG grew +34%. (4) Acquisition machine with a proven record: the Mendelson model of buying founder-led companies and letting them grow delivered ~47,500% from 1990 to 2019; Wencor (~$2 billion, 2023) was its biggest move and is already contributing. (5) Succession settled and skin in the game: the Mendelson family controls and runs it (sons Eric and Victor already run the two segments), aligned with long-term shareholders. Analysts: 'Moderate Buy', average target ~$386.10 (~+12.9% from $341.87).

What are the risks of investing in HEI?

Risks: (1) Very expensive valuation — #1: at ~62x earnings (forward P/E ~50x), the price already prices in years of perfect growth. HEICO is a great business, but at this price any weak quarter or integration stumble can trigger a sharp correction — you pay a lot for the quality. (2) Growth depends on buying companies: much of the story is acquisitions; if target prices rise, if they run out of good targets, or if an integration goes wrong (like Wencor at ~$2 billion), the engine slows. (3) Aviation cycle: the business depends on how much planes fly; a recession, a pandemic or a drop in air traffic reduces maintenance and hits parts sales (it happened in 2020). (4) Family control and succession: the Mendelson family controls via voting shares (HEI); Laurans Mendelson is now elderly — future success depends on his sons keeping the same capital discipline. (5) Customer and supplier concentration: it depends on a few large airlines and on the makers (Boeing/Airbus/GE) whose parts it copies; FAA regulatory changes on PMA parts could affect the business. (6) Symbolic dividend: ~0.07% a year is not real income — it is almost 100% a bet that the stock keeps rising.

Does HEI pay dividends?

Yes. HEICO Corporation pays a dividend of about 0.09% per year.

How can I buy HEI with little money?

You can buy fractional shares of HEI starting from a few dollars with any broker that offers fractional shares. The Vectorial Data method: invest the same amount in every pick, every time.

When was this HEI analysis last updated?

The HEI analysis was last updated on Invalid Date.

Stocks/HEI

HEI — HEICO Corporation

IndustrialsNorth AmericaUnited StatesBlockchain certified

$270.34

Target: $375.00 (+38.7%)

P/E Ratio

53.6

P/E Forward

42.6

Dividend

0.09%

Market Cap

$37.72B

EPS

$5.04

Consensus

Buy

What they do

HEICO Corporation (NYSE: HEI) is a U.S. aviation and electronics company, founded in 1957 and headquartered in Hollywood/Miami, Florida. ~11,100 employees. Its reputation comes from a very particular model: being the largest independent maker of FAA-approved replacement aircraft parts that compete head-on with the original maker's parts — cheaper, same certified safety.

Two segments:

Flight Support Group (FSG) — the heart of the business. It makes parts under FAA-PMA (Parts Manufacturer Approval): replacements for engines and aircraft that the FAA certifies as equivalent to the original part, but that HEICO sells 30-50% cheaper than Boeing, Airbus, GE or Pratt & Whitney. It also repairs and overhauls components (MRO). Its customers are airlines and maintenance shops that want to lower the cost of keeping their fleet flying. Q2 FY2026: record sales of $929.4M (+21%)**, 26.2% operating margin.

Electronic Technologies Group (ETG) — mission-critical electronics: components for defense, satellites, spacecraft, medical equipment and telecom. It is the higher-margin business and grows fast. Q2 FY2026: record sales of $459.5M (+34%)**, 26.5% operating margin.

The Mendelson model (the real thesis): in 1990, Laurans Mendelson and his family took control and turned HEICO into an acquisition machine: they buy small, profitable niche companies (founder-led), keep the people and culture, and let the business keep growing under HEICO's umbrella. Repeating that for 35 years, the stock delivered a return of ~47,500% between 1990 and 2019. His sons Eric Mendelson (runs FSG) and Victor Mendelson (runs ETG) are co-presidents — succession already underway. In 2023 they closed their largest deal to date: Wencor Group for ~$2 billion, one of the biggest independent distributors and makers of PMA parts, which doubled their catalog.

Two-class share structure: there is HEI (voting) and HEI.A (non-voting, cheaper). We are buying HEI, the voting class. The family keeps firm control of the company through this structure — good for long-term strategy, but it concentrates power in a single family.

Capital allocation: HEICO pays a tiny dividend (~0.07% a year, semiannual) — more a symbolic gesture than real income. Its philosophy is to reinvest almost all cash into buying more companies, because that is the real compounding engine.

Why we like it

HEI at $341.87 is buying one of the best compounding machines on the stock market: a family-run company that has spent 35 years buying niche aviation and electronics businesses and growing them. Specific reasons:

Structural cost advantage: HEICO sells FAA-approved aircraft parts 30-50% cheaper than the original maker. With airlines obsessed with cutting costs and fleets aging, there is structural demand for cheaper replacements — and HEICO is the independent leader.
Record and accelerating growth: Q2 FY2026 delivered sales +25% ($1,375.7M) and net income +49% ($233.8M), with 18% organic growth — not just from deals, the core business is accelerating. The stock jumped ~+12% on the report.
Two high-margin engines: both FSG (parts, 26.2% margin) and ETG (defense/space electronics, 26.5% margin) are at records; ETG grew +34%.
Acquisition machine with a proven record: the Mendelson model of buying founder-led companies and letting them grow delivered ~47,500% from 1990 to 2019; Wencor (~$2 billion, 2023) was its biggest move and is already contributing.
Succession settled and skin in the game: the Mendelson family controls and runs it (sons Eric and Victor already run the two segments), aligned with long-term shareholders. Analysts: 'Moderate Buy', average target ~$386.10 (~+12.9% from $341.87).

Key Risk

Risks:

Very expensive valuation — #1: at ~62x earnings (forward P/E ~50x), the price already prices in years of perfect growth. HEICO is a great business, but at this price any weak quarter or integration stumble can trigger a sharp correction — you pay a lot for the quality.
Growth depends on buying companies: much of the story is acquisitions; if target prices rise, if they run out of good targets, or if an integration goes wrong (like Wencor at ~$2 billion), the engine slows.
Aviation cycle: the business depends on how much planes fly; a recession, a pandemic or a drop in air traffic reduces maintenance and hits parts sales (it happened in 2020).
Family control and succession: the Mendelson family controls via voting shares (HEI); Laurans Mendelson is now elderly — future success depends on his sons keeping the same capital discipline.
Customer and supplier concentration: it depends on a few large airlines and on the makers (Boeing/Airbus/GE) whose parts it copies; FAA regulatory changes on PMA parts could affect the business.
Symbolic dividend: ~0.07% a year is not real income — it is almost 100% a bet that the stock keeps rising.

This is educational and informational content, not financial advice. Always consult a qualified financial advisor before making investment decisions.

Vectorial Data picked HEI on 2026-05-04 at $270.34.

Last updated: Invalid Date

Dividends received by the Vectorial portfolio

What this stock has paid the model since we bought it. Your actual amount depends on when you replicated.

Ex-div date	Per share	Shares	Total to portfolio
Jul 1, 2026	$0.1300	0.3330	$0.04

Total received: $0.04

Full Research

HEICO Corporation (HEI) — Research Completo

Precio: $270.34 | P/E TTM: 53.64 | P/E Forward: 42.56 | Div Yield: 0.09% | Market Cap: $37.72B

¿Qué es HEICO?

HEICO Corporation es el mayor proveedor independiente del mundo de partes aftermarket aprobadas FAA-PMA (Parts Manufacturer Approval) para motores de jet, airframes y componentes electrónicos. Fundada en 1957 en Hollywood, Florida. La familia Mendelson tomó control en 1990 cuando Larry Mendelson — un acquirer entrenado en private equity — vio el potencial.

Lo que sigue es uno de los track records de compounding más completos del mercado público de EE.UU.:

Métrica	1990	2026
Revenue	$26M	~$4.5B
Market cap	bajo nine-figure	~$37.72B
Multiplier	1x	>1,500x
CAGR	—	22-23% por 35 años

Una inversión de $100,000 en 1990 valdría >$100 millones hoy. ~59,337% retorno total incluyendo dividendos.

Clases de Acciones

Symbol	Voto	Cotización
HEI (Common)	1 voto/acción	$270.34 (esta posición)
HEI.A (Class A)	1/10 voto/acción	~$215 (descuento)

Económicamente idénticas — la prima reflecta el voto. Esta posición es HEI Common.

Sucesión Mendelson — Cambio Crítico (sept-2025)

Larry Mendelson (Laurans A. Mendelson) falleció el 27 de septiembre de 2025 a los 87 años. Era Executive Chairman; sucesión ya ejecutada según plan:

Eric A. Mendelson y Victor H. Mendelson ahora son Co-Chairmen + Co-CEOs
Eric sigue al frente de Flight Support Group (FSG)
Victor sigue al frente de Electronic Technologies Group (ETG)
HEICO declaró "no anticipa cambios en operaciones"

Larry había transicionado a Executive Chairman a inicios de 2025; Eric+Victor ya operaban como Co-CEOs por años. Transición fluida.

Q1 FY2026 — Reportado 25 febrero 2026

(Fiscal year ends 31 octubre)

Revenue: $1.18B (+14.4% YoY), batió consensus $1.15B
EPS: $1.35 vs estimate $1.27 (+6.3% beat); +12.5% YoY desde $1.20
Net income récord: $190.2M (+13% YoY)
Operating profit: $260M (+14.6% YoY)
Operating cash flow: $178.6M
Crecimiento orgánico: 12% FSG, 6% ETG; resto vía M&A

Por Segmento

Segmento	Revenue Q1	YoY	Op Income	Margen	Vs Q1 2025
FSG	$820.0M	+15%	$200.7M	24.5%	+110bps (expandiendo)
ETG	$370.7M	+12%	—	19.8%	-330bps (comprimido por mix)

ETG defense/space/aerospace mix: $301.2M (81.3%) | Otros (medical, telecom): $69.5M (18.7%).

Guidance

Q2 FY2026 (reporta 26 mayo 2026): EPS ~$1.60
FY2026 revenue: $5.01B

PMA Moat — El Centro del Modelo

HEICO Parts Group es el mayor proveedor independiente del mundo de partes FAA-PMA:

>19,500 partes FAA-PMA aprobadas
>500 nuevas partes/año (pipeline regular)
>90 millones de partes entregadas históricamente con CERO Service Bulletins, Airworthiness Directives, ni in-flight shutdowns trazables a HEICO
25-50% ahorro vs OEM en ese ítem específico
Aprobaciones para 737NG, 737 MAX, 757, 767, 777, 787 + varios Airbus

PMA permite a aerolíneas comprar partes genéricas FAA-aprobadas en lugar de OEM — savings inmediatos sin penalty regulatorio. Es uno de los moats más limpios en industrials.

Adquisiciones Recientes

Deal	Fecha	Segmento	Notas
Wencor (ancla)	4-ago-2023	FSG	$2.05B = $1.9B cash + $150M HEI.A — la mayor histórica
Millennium International	2025	FSG	90% del stock; avionics commercial repair
Rosen Aviation	mayo 2025	FSG	vía Mid Continent Controls; in-flight entertainment business aviation
EthosEnergy Accessories & Components	cerrada 5-feb-2026	FSG (vía Wencor)	engine accessory + component repair; 175 empleados; >175k sq ft EE.UU. + Escocia
Sherwood Avionics & Accessories	6-abril-2026	FSG	80% adquirido; management retiene 20%

Modelo: ~10+ deals/año, ~7-9x EBITDA pagados, retain management, descentralizado.

Capital Return

Dividendos semi-anuales (NO trimestral) — pago más reciente: 17-ene-2025 ($0.110/share). Yield ~0.09%, $0.24/yr.
8 años consecutivos subiendo dividendo (verificable). Cifra "92 dividendos consecutivos" no verificable en estas búsquedas — citada como tradición HEICO.
15 stock splits/dividends desde 1995. Más reciente: 5-for-4 split sobre ambas clases.
Dividend absoluto pequeño porque la acción ha compundido — el cash retorna primero a M&A y reinversion en compounding.

Catalysts 2025-2026

Boeing ramp: 737 MAX 47/mes en 2026 → 52 → 57; 787 7/mes → 10/mes en 2026. HEICO tiene PMA para ambos.
Aging fleet thesis vigente: gap delivery vs demand → flotas más viejas → más aftermarket consumption.
Defense sustainment tailwind: ETG sesgado 81% defense/space; budget global en alza.
MRO Americas 2026: presentación HEICO captó atención sell-side.
EthosEnergy A&C integration post-feb 2026: expande engine accessory repair capabilities.
Citi target $415 (13-ene-2026); RBC $375.

Analyst Consensus (mayo 2026)

Rating: Buy. ~12 analistas, 60% bullish.
Mean target: ~$373-376
High: $415 (Citi)
Low: $278-330
Upside vs $270.34: +38% al mean target.

Riesgos Cuantificados

Valuación premium real — P/E TTM 53.64x / forward 42.56x vs A&D peer ~37x.
ETG margin compression — 23.1% → 19.8% Q1 FY2026; verificar rebote en Q2.
OEM ramp risk — si Boeing/Airbus aceleran muy rápido, aging fleet thesis modera.
Recession exposure — aftermarket es cíclico (revenue -10% GFC, -20% COVID).
M&A integration risk — pace 10+ deals/año.
Sucesión familiar — Larry murió sept-2025; Eric+Victor sólidos pero pérdida del arquitecto.

Tesis en una línea

Comprar el compounder de aerospace aftermarket más probado del mercado público (CAGR 22-23% por 35 años, >1,500x desde 1990) en el rango premium histórico, con FSG margen expandiendo, M&A pipeline activo, y aging fleet thesis vigente. La sucesión Mendelson ya ocurrió y fue fluida.

Research fecha: 4 May 2026 | Próxima revisión: Nov 2026

Esto no es asesoría financiera.

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Researched: 5/4/2026Updated: 5/4/2026Next review: 11/4/2026

This is not financial advice. Consult a certified financial advisor.

The author may hold positions in the securities discussed.

Past performance does not guarantee future results.